Cardano price, a popular layer-1 network, remains in a bear market as the prolonged retracement that started in December continued. While ADA investors are deep in the red, one popular analyst believes that the coin is ripe for a strong bullish breakout, citing its historical performance.
Top Analyst is Bullish On Cardano Price
Crypto analysts are generally bullish on the Cardano price, citing its historical performance and the fact that it has some strong fundamentals.
Sssebi, a crypto analyst with about 18k followers on X, noted that the coin was doing what it has always done in the past. He said that Cardano often consolidates, then goes parabolic by between 200% and 300%, and then consolidates again.
Cardano has already surged by 300% in November and December. He expects that the ongoing consolidation may remain for a while and then the ADA price will surge to $2.5. Such a move would be a 250% surge from the current level.
Potential Catalysts for ADA Price
Cardano has numerous potential catalysts that will push it higher in the longer term. In an X post, one analyst noted that Cardano would be the best option for moving US government data to the blockchain as Elon Musk has suggested. Cardano is one of the most decentralized networks, has a 100% uptime, and low transaction costs.
The other potential catalyst for the ADA price is the upcoming midnight launch and the potential ETF approval. Midnight is a scaling solution for Cardano, while an ETF approval will lead to more inflows.
Cardano Technical Analysis: More Gains Ahead?
While the value of ADA looks ugly on the short-timeframe charts, it is fairly encouraging on the weekly chart. In it, the coin’s retreat is part of the second section of the Elliot Wave. This pattern is usually a short corrective phase. It then followed by the third wave, which is the longest one.
The Cardano price has also retested the key support at $0.807, the highest swing in March last year. It was also the neckline of the triple-bottom pattern shown in blue. A break and retest and a triple-bottom pattern is a highly popular bullish continuation sign.
ADA Price Targets
Cardano’s outlook is bullish, with the initial level to watch being at $1.310, the upper side of the first Elliot Wave. A break above that price will point to more gains to $2, the 61.8% retracement level and the potential end of the third wave.
The bullish ADA price forecast will become invalid if the coin drops below the key support at $0.516 will invalidate the bullish view.
Frequently Asked Questions (FAQs)
The analyst expects that the ADA price will rebound later this year because it often rises by between 200% and 300%, then consolidates. It then bounces back and resumes the uptrend.
The other catalysts for the Cardano price are the ADA ETF approval, more partnerships, and the odds of it being selected by Elon Musk. It has also formed a bullish engulfing chart pattern.
Cardano can surge to over $2.5, if the analyst’s estimate is correct. However, a drop below the support at $0.50 will invalidate the bullish view.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/top-expert-explains-why-cardano-price-may-explode-to-2-5/
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